Project Description
A proposed loan to Chupa Chups Rus for renovation and expansion of its production plant. The project would allow Chupa Chups Rus to complete its investment programme aimed at increasing production capacity, developing new products and expanding distribution network.
Transition Impact
The transition impact of the project is likely to include:
- Forward linkages in the improved distribution of food products in Russia through modernisation of the distribution channels, which is one of the key transition challenges of the agribusiness sector in Russia. The company intends to significantly expand its distribution network, which will make possible a transfer of marketing, merchandising and logistics skills that can be applied to other fast moving consumer goods.
- Increased competition in the sugar confectionery sector through the larger and wider variety of products distributed by the Company to most of the food outlets in Russia. This will widen the choices available to consumers.
The Client
Chupa Chups Rus is the leading producer and distributor of confectionery products in Russia. It is majority-owned by Chupa Chups S.A., one of the largest confectionery companies in the world, and the number one lollipop manufacturer.
EBRD Finance
Long-term corporate loan of US$ 18 million. (€20.6 million).
Project Cost
US$ 18 million.
Environmental Impact
The project has be screened B/1, requiring an environmental audit and analysis. The Company will be required to operate in accordance with national and EU or World Bank environment, health and safety requirements. The Company will also be required to submit an annual environmental report to the Bank.
Technical Cooperation
None.
Company Contact
Business opportunities
For business opportunities or procurement, contact the client company.
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Email: procurement@ebrd.com
General enquiries
EBRD project enquiries not related to procurement:
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Email: projectenquiries@ebrd.com
Public Information Policy (PIP)
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Text of the PIP
